March 9, 2011
- in Uncategorized by schooloftrade
How did I miss that price channel on crude oil today?
815am est
– The dollar index is our first stop on our daily routine
– The dollar rises on Tuesday, giving us selling opportunities
– Now the dollar has dropped off this resistance and appears to be searching for the next move.
– Should the dollar break above 77.000? we want to sell
– Should the dollar keep making new lows, we want to buy
– It will be important to see which Direction the dollar moves today
– With the dollar sitting in the middle of the current range (at least NOT at support or resistance) we can expect the price to rise OR fall, which means we need to be open to both directions in our trades right now.
820am est
– We had very slow speed on gold until 820am at the open of the pit.
– Speed picks up, buyers enter the market and price goes to the highs
– Now we slow down dramatically at 830am
– Does this mean the buyers will be here to stay?
– Should we take this as a heads up? As a clue?
– Let’s wait and see where the gold goes next
845am est
– We see the dollar is having a hard time breaking the trigger line resistance on the 13rangfe chart
– This is giving support to the gold futures, making it hard for the sellers to drop the price off the highs on gold.
1000am est
– We took our first 3 trades of the day as winners
– But the price action over the past 30 mins has made us very concerned about the next hour of time
– Very sloppy and sluggish
– Crude Oil takes a Fast Track Loss with a 34range wave,
– Gold very slow
– We need to stay patient and wait for the best trades now
1010am est
– We get closer to the crude oil inventories and the price gets quieter
– 34range trigger line is FLAT as a board, we need to be careful
– We already made our money selling the highs of the crude range, lets not get away from our simple plan of attack
– Buy the lows, sell the highs, and avoid the middle
1036am est
– We have mixed reviews of the news on crude oil
– Gas and distillate came in lower, while crude came in higher
– This leads to confusion on the crude oil
– We notice the flat trigger lines on crude as a red flag
– We also see the BMT lines are in the MIDDLE of the crude trading range, which is why we need to wait.
– The BMT levels are almost always in the middle of the range, and we need to avoid the middle.
– We also now trading at the Prev Day’s OPEN
– This tells us that NOTHING HAS CHANGED in the eyes of the traders
– No buyers are interested in buying
– No sellers are there to take it back down
– So it sits at the same point where it began, waiting for someone to have reason to push up or down
1045AM EST
– Sold the highs on crude oil @ 1045 after seeing it as an easy level of resistance ahead of time
– FT Win, but still seeing < 12 ticks on most of the FT entries today
